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CAGR & Lumpsum Calculator

Find the compound annual growth rate (CAGR) of an investment from its start and end value, or project what a one-time lumpsum will grow to at an expected rate.

CAGR (Compound Annual Growth Rate) is the smooth yearly rate at which an investment grew from a starting value to an ending value. Use CAGR mode to find that rate from what you put in and what it's worth now, or Lumpsum mode to project what a one-time investment will grow to at an assumed rate.

at per year (CAGR)

Invested
Total gain
Absolute return

Absolute return is total gain ÷ invested (ignores time). CAGR is the smoothed yearly rate — the right way to compare investments held for different lengths of time.

CAGR formula

CAGR = (Final value ÷ Initial value)1 ÷ years − 1

A one-time (lumpsum) investment grows the other way around: Future value = P × (1 + r)years, where r is the annual rate.

Example: ₹1,00,000 growing to ₹2,00,000 in 5 years is a 100% absolute return, but a CAGR of (2,00,000 ÷ 1,00,000)1/5 − 1 = 14.87% per year. That per-year figure is what lets you compare it against, say, an FD or another fund.

Investing a fixed amount every month instead? Use the SIP Calculator. Returns from investments on many different dates? Use the XIRR Calculator.

About CAGR & Lumpsum Calculator

Find the CAGR (Compound Annual Growth Rate) of an investment from its starting and ending value, or switch to lumpsum mode to project what a one-time investment will grow to at an expected rate. CAGR is the smoothed yearly return that lets you compare investments held for different lengths of time. Everything runs in your browser.

How to Use

  1. Choose CAGR mode (you know the start and end value) or Lumpsum mode (you want to project a future value).
  2. In CAGR mode, enter the initial value, the final value, and the number of years.
  3. In Lumpsum mode, enter the amount, the expected annual return, and the number of years.
  4. Read the CAGR, total gain, and absolute return.

Why Use This Tool?

Frequently Asked Questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the constant yearly rate at which an investment would have to grow to go from its starting value to its ending value over a period. It smooths out the ups and downs into a single 'per year' figure.

What is the CAGR formula?

CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1. For example, ₹1,00,000 growing to ₹2,00,000 in 5 years is (2,00,000 ÷ 1,00,000)^(1/5) − 1 = 14.87% per year.

What is the difference between CAGR and absolute return?

Absolute return is the total gain ÷ amount invested and ignores how long you stayed invested. CAGR converts that into a yearly rate, so a 100% absolute return over 5 years (14.87% CAGR) can be fairly compared with a 40% return over 2 years (18.32% CAGR).

What is the difference between CAGR and XIRR?

CAGR works for a single lumpsum with one start and one end value. XIRR handles many cash flows on different dates (like a SIP). For a single lumpsum held for a whole period, CAGR and XIRR give the same answer; for a SIP, use XIRR.

What is a lumpsum calculator?

A lumpsum calculator projects what a single one-time investment will grow to at an assumed annual return, using Future value = P × (1 + r)^years. Switch this tool to Lumpsum mode to use it that way.

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